The role of policy instruments in the innovation and diffusion of environmentally friendlier technologies: popular claims versus case study experiences

2008 ◽  
Vol 16 (1) ◽  
pp. S162-S170 ◽  
Author(s):  
Per Mickwitz ◽  
Heli Hyvättinen ◽  
Paula Kivimaa
Econometrica ◽  
2020 ◽  
Vol 88 (1) ◽  
pp. 83-114 ◽  
Author(s):  
Francisco J. Buera ◽  
Ezra Oberfield

We provide a tractable, quantitatively‐oriented theory of innovation and technology diffusion to explore the role of international trade in the process of development. We model innovation and diffusion as a process involving the combination of new ideas with insights from other industries or countries. We provide conditions under which each country's equilibrium frontier of knowledge converges to a Fréchet distribution, and derive a system of differential equations describing the evolution of the scale parameters of these distributions, that is, countries' stocks of knowledge. The model remains tractable with many asymmetric countries and generates a rich set of predictions about how the level and composition of trade affect countries' frontiers of knowledge. We use the framework to quantify the contribution of bilateral trade costs to long‐run changes in TFP and individual post‐war growth miracles. For our preferred calibration, we find that both gains from trade and the fraction of variation of TFP growth accounted for by changes in trade more than double relative to a model without diffusion.


2018 ◽  
Vol 52 (2) ◽  
pp. 264-284 ◽  
Author(s):  
Michael Howlett ◽  
M Ramesh ◽  
Kidjie Saguin

Abstract The purpose of this study is to understand the role of international and domestic actors, ideas and processes in the diffusion of public policies. It argues that existing studies on the subject do not provide an adequate explanation of the mechanisms through which diffusion takes place, nor do they sufficiently address the roles of actors affecting the policy transfer process. We address these shortcomings by studying the diffusion of conditional cash transfer (CCT) programs from Brazil and Mexico to the Philippines over the past decade. We use the concept of an ‘instrument constituency’ to delineate and trace the various actors and channels involved in the diffusion of CCTs. The case study shows that these groups of actors dedicated to the articulation, adoption and expansion of particular policy instruments are central players in transnational diffusion of policies and offer a robust explanation of the phenomenon.


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